Crisis in the housing market?
Since the pandemic, fears of a possible financial crisis similar to the one of 2008 have increased. Fortunately, we cannot yet talk about collapse, but it is necessary to assess the impact of the second wave of coronavirus.
Some studies have shown that one of the few areas that experienced a sharp increase in the year of the pandemic was home mortgages. Together with the increase in the number of loans disbursed, this means that the value is not only driven by the increase in the price of apartments. This is especially true for Prague, which alone accounts for over 60% of the Czech residential market.
The various restrictions on the movement of persons have harmed foreign investors. On the other hand, the availability of local households and businesses is growing and, in line with what has happened in other European cities, they are looking for new investment opportunities. Based on data published monthly by the Fincentrum Hypoindex, the average mortgage credit rate has decreased, which has stimulated investment by the Czech population.
References:
https://www.hypoindex.cz/
https://www.progetto.cz/mercato-immobiliare-crollo-allorizzonte-tuttaltro/
